You're watching...
Secretary of Agriculture Tom Vilsack on the impact of the drought on food prices and efforts to get the Farm Bill passed.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
We're continuing our discussion now with the Agriculture Secretary Tom Vilsack on the drought and the potential impact on the economy animal farm bill on capitol here live now on foxbusiness.com.
-- secretary welcome back and -- for.
Sticking around on this you're going to be coming out with some new crop estimates on -- Monday are they expected report.
More damage to crops more damage to livestock it.
Moved down.
Assume that what based on what we've been.
Told from the folks that we set out into the field we went to twelve different states summer personnel they're reporting some very devastating.
Destruction to crop so we would expect anticipate.
That these crop reports aren't necessarily going to be -- a lot of positive news.
Having said that again -- technologies this spotty rain in certain circumstances.
More acres planted.
May mitigate the impact and effect of what would have been -- very serious drought but for the fact we planted more.
We are trying to help right now my primary concern is is on the -- side because.
These producers have little -- defeat in the feed costs are gonna go up and there's absolutely no disaster program in place to help them.
At least crop.
Producers have crop insurance so we would encourage them to make sure that they're contacting their insurance agents right now.
To make sure that they verify the condition of their crop so that they don't jeopardize their ability to make -- How much higher might.
Commodity prices go because of this we've already seen records and corn for example well I would expect anticipate that the markets.
Pretty much where it's likely to be.
I don't think we're gonna see -- much more dramatic increase we've seen a rather substantial increase since June 1.
And he gets to a point -- you basically talk about.
The key here I think is for -- to have continued to encourage congress to get something on the board through the fruit -- jobs bill.
To get those disaster programs back in in place or some kind of flexibility for USD -- it.
The commodity credit corporations -- something along those lines to provide help and assistance that would help moderate I think has some of the concerns but let's talk about the farm bill because right now the house leadership hasn't put it on the schedule.
Clock is ticking down the bill expires on September 30.
Where -- your negotiations discussions with the house leadership stand as far as trying to get they get the house to vote on the farm bill.
Well as of right now is not received any indication that it say enough of a priority to get it on the board in and that's really concerns me.
Leader -- suggested that he's got his finger on the pause button and and obviously the a lot of us are beginning to put our fingers on -- panic button we've got to get something through this process and prefer early before the Argus research -- recess so that any differences can be worked out in time before that September deadline.
Summit suggests it will just continue the 2008 farm bill that do an extension to have a problem with that.
Is it will not revive the disaster programs for livestock those programs because they expired last year they were allowed to expire last year they don't get revived by just simply extending the current -- you actually have to have.
-- renewal of those programs and and that gets into some expense.
We've helped over 400000 producers through disasters in the first three years of this program is obvious that they're going to be tens of thousands of producers they're gonna need help this year.
What about the concerns though some of the house Republicans as you know some of them are want.
Stronger reforms and some of the subsidy programs and some of the the food stamp program.
Are you willing to work with the Republicans in the house to -- get a compromise that.
Can get 218 votes we're gonna continue to work with folks but I think it's important for us to make sure that the house leaders -- lenders understand they were now out of fraud rated in this -- program of less than 1% -- -- a new name for the food food stamp program just to clarify that it's an historic low.
That the error rate is an historic low we have a series of other.
Reform so we'd like to put in place that we think we can knock down that number even further we did over 800000 investigations of individuals and companies last year.
We're gonna continue to focus on this because we know the people -- concerned about it.
At the same way there are other programs and obviously have to have a look of the crop insurance plan for example program for example has a higher rate and higher fraud rate.
Than the stamp program so obviously -- there's continued work to do until.
Until you get any of those numbers down -- zero.
Have you seen any price gouging and -- markets at this point because of the ground because of all -- no we haven't -- -- -- who warn consumers that if you go to grocery store and all of sudden you see a significant increase in in because for example of pork -- cost more -- across more.
I would encourage folks -- Why's this happening -- -- someone suggests is the drought than you know that your being played because drop it will take time for the job to have an impact on on food prices.
One of the things you mentioned though is that is that technology agriculture technology has improved significantly I was surprised to doing my research to -- That the despite the drought.
It looks like American farmers are on track for the third highest corn harvest on record.
Based on there on the numbers today announced next week those numbers may be impacted -- affected but they're still going to be a significant.
Corn crop Bennett the same time of being crop is still gonna be strong as well.
Having said that there are a lot of demands lot of needs and a lot of interest in the export market is another opportunity for us where we basically can create wealth in this country by expanding exports.
We've done a remarkable job last three years of record anger exports we obviously -- -- continued to do that.
-- gonna keep and I don't -- -- at the White House the other day about the about ethanol which is made from corn and whether or not you -- the administration might support a waiver.
For ethanol requirements for.
Gasoline has you said not at this time and he changed.
And that not likely first for three reasons one there's already have a significant supply -- ethanol a surplus about the home that really.
And it doesn't require us to be concerned about whether or not we're able to meet the standards.
Number two there are credits that the petroleum and -- have they can use in lieu of -- all there's a substantial number of those it could be used in three.
When ethanol -- produced third.
Of the -- if you will that it turns into a feed additive so would it is helpful to the livestock industry as well.
-- we're obviously gonna continue monitored at this point in time we don't see any reason to change the standards.
This ethanol industry's important industry is providing consumer choice it's reducing the cost at at the pump.
Somewhere between eighty cents and -- thirty gallon less based on one study.
So wanted to be able preserve that it's also a job creator and and obviously it is an income producer for for farmers across the midwest -- Agriculture Secretary Tom Vilsack thanks for joining us on Fox Business Network and foxbusiness.com.
Thank you -- get -- get back to our thanks for coming next.
